link posted on iv boards of mlp and bry
chrx KA held 13.6 mm units end of Sept 2014 and around that same amount end of June 2014, so would have added .5 mm to be at 14.1 mm
in marcellus and utica
would be wise during this chaos and will not help the stock price to raise distribution as market wants stability right now
wiser to preserve cash
As producers shift focus to sweet spots in Permian Basin, Eagle Ford, (etc) they should need more gas processing capacity, not less. RBN example of NGLS and APL
Look for gathers, processors, transporters, etc who have a preponderance of acreage commitments to the sweet spot producers rather than the fringe producers for the near term would be my observation.
To me its not about the absolute price of oil but about producers being able to develop and produce and sell at the margin or better. Free market forces are the best for dictating a fair oil price. Right now with no exports its produce and consume (or process and convert to other products and export) or suffer and shut in if exporting by products is not at the margin or better. US exporting oil would provide an outlet for captive oil produced at the margin and then we would see the free market price of oil and those in US producing at the margin would be able to recover their cash costs without having to shut in.
hi nosweat, thanks for your thoughts; but let me suggest it may not get to this. if one would goes back and revisits the 2 and 5 years response to the 1985/1986 oil price crises when Saudi Arabia took it upon themselves to defend production 29 years ago to month of this 2014 defense of production; one can see the crises began to remedy itself (took several years to fully resolve) after two distinct oil price bottoms over the first 7 months, oil production dropping after a 2 month delayed response etc. etc I would suggest this may be a somewhat similar response. The graphs ( 2 year, 5 year and 29 year) can be seen on either the investorvillage mlp or bry baords under my id
iv bry Msg 160511 of 160529 at 1/10/2015 8:30:03 AM by
Labor Participation Rate Drops To Fresh 38 Year Low; Record 92.9 Million Americans Not In Labor Force
Submitted by Tyler Durden on 01/09/2015 08:52 -0500
Another month... to mask the collapse in the US labor force with a goal seeked seasonally-adjusted surge in waiter, bartender and other low-paying jobs. Case in point: after a modest rebound by 0.1% in November, the labor participation rate just slid once more, dropping to 62.7%, or the lowest print since December 1977. This happened because the number of Americans not in the labor forced soared by 451,000 in December, far outpacing the 111,000 jobs added according to the Household Survey, and is the primary reason why the number of uenmployed Americans dropped by 383,000.
Rexx is still strongly supporting NE PA
-From mid Dec update with a $115 mm to $140 mm 2015 capital budget. Also banks amended credit facility
"...In addition, given the strong performance of its recent wells, the company continues to expect it will fully utilize its dedicated processing capacity at the Bluestone and Sarsen facilities near the end of the first quarter of 2015. The company expects the Bluestone III processing facility to be placed in service early in the fourth quarter of 2015..."
"...Rex Energy's bank group has unanimously approved an amendment to the company's senior secured credit facility. The approved amendment replaces the previous leverage covenant for the senior secured credit facility with a new leverage covenant limiting senior secured borrowings to 1.75 times the company's trailing twelve month EBITDAX. Given the company expects to exit 2014 with no borrowings outstanding under its senior secured credit facility, this change to the leverage covenant provides Rex with substantial financial flexibility...."
Antero announced they laid off contract 250 landmen (brokers) indicating they they were going to focus on drilling. also suspended some pipeline work but not sure where when and whose pipeline work
iv bry Msg 159680 of 160481 at 1/6/2015 8:51:16 AM by
Antero Resources to lay off 250 contract brokers
Antero Resources to lay off more than 250 contract brokers
Posted on January 6, 2015 at 6:55 am by Associated Press in Crude oil, Jobs & Career Advice, Natural gas, Natural gas liquids
CLARKSBURG, W.Va. — Antero Resources plans to lay off more than 250 contract land brokers and focus on drilling.
Regional vice president Al Schopp tells The Exponent Telegram that the layoffs won’t affect Antero’s employees.
He says prices for natural gas liquids have been affected by a drop in crude oil prices. The price decline prompted Antero to reevaluate how much capital it commits to land acquisition.
Schopp says the company wants to focus its capital on drilling.
iv bry Msg 157556 of 160481 at 12/19/2014 8:29:53 AM by
Layoffs here in Ohio
We were just informed by some of the Turner Land Execs that they have layed off 50 land people with today being their last day. Also Antero has suspended some of the pipeline work and supposedly temporarily layed off several crews working here in SE Ohio. The excuse was winter weather ( its almost perfect for field work right now nice and cool and dry) slowing the projects. Right !!!
Two lease deals that were in final stages of closing have been cancelled by Triad Hunter (MHR) in Washington County, OH and Pleasants County WV.
Local supplier boss told me yesterday that pipe orders for wells with pads in place have been cancelled and/or moved into next years possible resumption plans by most drilling the Utica/Marcellus plays.
Signs of a turn are all around IMHO
"...Two test wells have already been drilled: one in Lawrence County, and another in Putnam County, West Virginia..."
"...ABARTA Energy posted an exclamation point-laden blog post talking about the Rogersville Shale.
“ABARTA is currently working on a potential new shale play in Kentucky called the Rogersville shale. This is a brand new shale that has never produced commercial gas, but information from some old deep test wells indicate potential for vast reserves at great depths. The Rogersville shale is even older and deeper than the Marcellus or Utica shales and is Cambrian age (+500 million years). This makes the potential shale play extremely risky and expensive, but the rewards could also be extreme! The Rogersville shale play is located in a deep, narrow sub basin in eastern Kentucky called the Rome Trough. Drilling depths will likely be about 2 miles deep!...”
"...Landowners in several Eastern Kentucky counties have reported being approached by companies wanting to buy their mineral rights. On an online message board last month, a Lawrence County landowner reported interactions with Chesapeake Energy, who he said offered him $200 per acre for his mineral rights, along with a 12.5 percent royalty on the oil and gas produced from beneath his land...."
A little deeper and a little more expensive than the Utica and Marcellus. This is in addition to the shallower huron/brea play in Kentucky-Central WV they already sit on and process for. If this one eventually proves out also, MWE will still going to be growing in the NE for 20 plus years
"tech" you did not "read" everything. they have access to approx $30 mm credit line
"As of September 30, 2014, the remaining outstanding principal balance of the Second Amended Platinum Note was approximately $3.2 million, with $31.8 million still contractually available under the credit facility."